Cryptocurrency as Speculative Allocation

As the markets get off to a slow start to 2026, investors have a lot on their minds. Daniel Stein, manager of two Charles Schwab branches in Virginia, joins host Mike Townsend for a wide-ranging discussion about the key concerns of individual investors, including market volatility, the potential for an AI bubble, the challenges of diversification in a top-heavy market, and international stocks, along with the roles of precious metals and cryptocurrency in a portfolio. Dan offers practical suggestions for assessing whether a portfolio is properly diversified, considerations when rebalancing portfolios, and making disciplined decisions about when to sell assets. 

Mike also shares updates from Washington on the nomination of Kevin Warsh to succeed Jerome Powell as Federal Reserve chair, a lower profile but critically important nomination to head the Bureau of Labor Statistics, and the GOP’s shrinking majority in the House of Representatives.

WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.

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​Past performance is no guarantee of future results.

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All names and market data shown are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

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Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability.

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International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets.

Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument.

Cryptocurrency-related products carry a substantial level of risk and are not suitable for all investors. Investments in cryptocurrencies are relatively new, highly speculative, and may be subject to extreme price volatility, illiquidity, and increased risk of loss, including your entire investment in the fund. Spot markets on which cryptocurrencies trade are relatively new and largely unregulated, and therefore, may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments. Some cryptocurrency-related products use futures contracts to attempt to duplicate the performance of an investment in cryptocurrency, which may result in unpredictable pricing, higher transaction costs, and performance that fails to track the price of the reference cryptocurrency as intended.

Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money by investing in the fund.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

Currency trading is speculative, very volatile and not suitable for all investors

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